India software exports rose 8.2% to $221.4 billion in FY2025-26, according to the Reserve Bank of India’s annual software and IT-enabled-services survey released on September 18. The stronger headline masks an uneven mix: IT and engineering services expanded, software-product development contracted, and the United States absorbed more than half of the total.
| Total exports | $221.4 billion |
|---|---|
| US share | 54.1% |
| Off-site share | 91.7% |
What the RBI survey measured
The RBI contacted 7,569 exporters and received responses from 2,363, including most large operators. Respondents represented about 89% of the central bank’s estimated software-services exports. That coverage makes the survey a broad industry measure, but it is still an estimate built from respondents rather than a complete administrative count. The $221.4 billion headline excludes local sales made through Indian companies’ foreign affiliates. Adding that overseas commercial presence lifts the wider measure to $239.3 billion, up 9.5%.
India software exports shifted toward remote delivery
Off-site delivery generated $203 billion and accounted for 91.7% of India software exports, compared with 90.7% a year earlier. On-site earnings declined to $18.4 billion from $19 billion. The pattern shows that growth came from work delivered remotely from India and other delivery centres, not from putting more staff at client locations. It is therefore wrong to read the export increase as evidence of a matching rise in overseas deployments or visa-dependent work.
IT and engineering carried the increase
IT services rose to $147 billion from $131.3 billion, while engineering services advanced to $12 billion from $10.8 billion. Product-design engineering climbed sharply in rupee terms. By contrast, software-product development fell to $6.4 billion from $6.8 billion, and BPO exports were almost flat at $56 billion. The mechanism matters: India gained through higher-value technical delivery even as the more repeatable product and process-outsourcing categories did not all share the momentum.
The US concentration is both strength and exposure
The United States bought $119.7 billion of services, 11% more than a year earlier, and its share rose to 54.1% from 52.9%. Europe generated $70.3 billion, but its share eased to 31.8%. That concentration gives Indian suppliers access to the world’s largest enterprise-technology market, yet it also ties more than half the export pool to US corporate spending, regulation and currency conditions. The RBI data do not prove that visa or tariff policy caused any movement, so those links should not be inferred.
What businesses should watch next
The useful leading indicators are the mix of engineering versus BPO work, the share delivered off-site and whether product-development exports return to growth. Companies adding advanced engineering, cloud and industry-specific work may benefit from the same shift reflected in the survey. Readers tracking India’s technology manufacturing push can also see how services capabilities connect with the Tata–L&T chip partnership and Coforge’s automotive engineering expansion.
Frequently asked questions
How much did India software exports grow in FY26?
They grew 8.2% to $221.4 billion, excluding local sales by overseas affiliates.
Which market bought the most Indian software services?
The United States remained largest at $119.7 billion, or 54.1% of the total.
Did every software segment grow?
No. IT and engineering services grew, while software-product development fell and BPO was nearly flat.
Disclosure note: figures and event details are attributed to the source ledger; no investment recommendation is made.
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